Introduction
Every business organizations aim at increasing its competitiveness in the market. Equally important is the need to retain its competitiveness. For this reason, business organizations need to assess themselves continuously so as to identify possible areas where they need to improve on. The Strength Weaknesses, Opportunities and Threats, (SWOT) matrix and the Grand Strategy are some of the matrices which are used to analyze an organization (Anonymous, n.d, p.2). The following paper will give an analysis of Research In Motion Company with respect to the above 2 matrices upon which it will identify and discuss appropriate recommendations which Research in Motion should embrace.
SWOT Analysis Matrix for Research in Motion
Strengths
- Research in Motion has a good reputation in the market. It is the company behind the once powerful blackberry. Because of this, the company has a reputation for manufacturing a solid telephony device.
- The company also has a good security reputation. Security is a major factor to consider in any communication device. Owing to the robust operating system which is installed on Research in Motion’s devices, the company has acquired a good reputation in this crucial aspect.
- The company also has a stable market base; having loyal customers who regard the company’s products highly, for instance the blackberry loyalties.
- The company is also in a good financial situation. The company had been profitable for the larger part of the last decade. In fact, its profits had been increasing before the venture of Apple and other smart phone manufacturers in the market. Because of this, the company is doing great financially. The little debt which the company boasts of is also an added advantage.
- Research In Motion Company also targets a specific group of customers who are mainly business people. Therefore, the company is able to produce devices which satisfy the specific needs of people in the business world (Zimerman 2012, p.1)
Weaknesses
- The company depends heavily on the American market. For this reason, the company’s sales revenue reduced when the competition in the USA market increased after the release of the I phone (Zimerman 2012, p.1).
- The company is also facing a Human Resource and talent deficiency after laying off employees in a bid to lower operating costs.
- The company is also facing stiff competition in the American market and the broader global market from giant communication devices manufactures. With the main competitors being Nokia and Samsung.
- Lack of innovation
Opportunities
- The company can venture into developing markets mainly in the third world economies.
- The company’s devices are a blend between touch screen and keyboard character input devices which gives it an advantage over its competitors.
- The company is aiming at launching 100,000 applications with the Blackberry 10 which will give it an edge in the market (Zimerman 2012, p.1).
Threats
- Stiff competition from Smartphone manufactures.
- The ‘Bring your own technology/device’ proves to be a threat to RIM since it cannot copy technologies from other smart phones. It just has to innovate it own.
- The lawsuit against RIM filed by Nokia accusing it on infringing on a patent is also a problem (Zimerman 2012, p.1) threatens to damage its reputation.
Grand Strategy Matrix
As seen from the table above, it can be said that RIM lies in the fourth quadrant.RIM has a strong competitive position (Mishra &Akbar, 2007). The company’s devices are strong and have a strong make persuasion power. However the company is facing a slow market growth. In fact, it can be seen that the market is shrinking owing to stiff competition. As per the Grand Strategy Matrix, RIM should adopt the following strategies.
Strategies for Organizations in the 4th Quadrant
- Concentric diversification
RIM can diversify in the making of other products owing to its technological prowess (Mishra &Akbar 2007, p.22). It can translate its technological knowledge to other industries for instance Apple which produces laptops, phones and music/ digital music devices which have some similarities in technology requirements
- Joint Ventures
Research in Motion Company could consider a joint venture with other phone manufactures in a bid to increase its competitiveness. This move is successful if the developing of the Android operating system by Google and Samsung is anything to go by.
- Horizontal diversification
RIM may consider producing other products which are unrelated to communication devices but are suitable for the company’s current customers so as to reduce its dependence on communication devices, for example Apple which produces both phones and music devices & software (Mishra &Akbar 2007, p.23).
- Conglomerate diversification
RIM may consider marketing new products which are not related to its current products line (Mishra &Akbar 2007, p.23).
Advantages and Disadvantages of 2 of the Above Strategies
- Joint Ventures
The advantage of RIM entering into a joint venture is that it will be able to benefit from the benefits associated with economies of trade. RIM stands to reduce costs in innovation and development. On this pint, it can be acknowledged that a joint venture will see the merging of two companies with differing technologies. With this, RIM will be able to evade the hurdles presented by the ‘develop your own technology’ trend which threatens to reduce RIM’’s competitiveness further. Moreover, RIM will be able to benefit from the great technology which results from the joint venture. A good example is the Android operating system which is shared between several smart phone manufactures.
The disadvantage with a joint venture is that RIM will lose its individual appeal in the market. This will have a negative effect on the RIM brand.
- Concentric Diversification
With a concentric diversification plan in place, RIM will be able to use its technology prowess in other products / industries. With this, the company will be able to diversify its products hence stop relying heavily on its communication gadgets. The company should follow the example of Apple which has a wide product base (Mishra &Akbar 2007, p.23).
The disadvantage of a concentric diversification is that the company may fail to give concentration on a specific product line which will have a negative impact on the quality of its products (Mishra &Akbar, 2007).
Recommendations on Specific Strategies for RIM
- Entering into joint ventures with other phone and communication gadgets manufactures in a bid to benefit from the new technologies in the market.
- Investing in innovation so as to keep up with the market trends
- Focus on the developing markets in a bid to increase its sales revenue
- Diversifying its product line so as to reduce overdependence on single products
Comparison of the Above Strategies with the Strategies Currently Used by Research in Motion Company
Currently, RIM is working on developing its Blackberry series. However, the rate at which it is developing it is developing its products is far much slower as compared to the rate at which Smartphone’s are being released in the market. For this reason, RIM should go for a strategy which aims at increasing its competitive in the market by keeping it at par with the trends in the market. This lacks in the current strategies employed by RIM. The adoption of the above strategies is a sure way of increasing its competiveness.
How the Recommendations can be implemented
The implementation of the above strategies needs a strategic approach in order to ensure that they are successful.
With respect to the joint ventures, the company should look out for a company with which they share common interests with. The joint venture may be on specific features of the operation or manufacture. With an aim of reducing its costs, the company may opt for joining up with manufactures so as to save costs on manufacturing costs. Moreover, RIM should look for a company which adds value to its product line.
With respect to innovation, the company should encourage internal innovation from the employees and also source for innovation models from institutions of higher learning just like Android and Apple manufacturers do. This will enable RIM to integrate in some key features which are aligning with the trends in the market.
The company should also aim at venturing into the developing markets in Africa, Asia and South America. It should evaluate its price so as to reach out to the markets with low purchasing power. It should also integrate in features which are required in the developing market.
Results to Expect from the Implementation of the Above Strategies
The company should expect increased sales from the implementation of the above strategies. The company should also expect to increase its markets and reverse its slow market growth.
Recommended Timetable for the Actions
Focusing on developing markets
Investing in innovation
Diversifying its product line and product proliferation its current product line
Entering into joint ventures
How to Review the Success of the Strategies Recommended
It is important to review the success of any strategy so as to evaluate its appropriateness in achieving the specific set of objectives and goals set by an organization (Anonymous, (n.d.), p.3). The following ways will be used to review their success.
Evaluating the sales volumes – this will identify if RIM is increasing its sales revenue. The company is currently facing reducing sales.
Evaluate the market share – RIM market share is currently reducing owing to the stiff competition from Smartphone manufactures mainly Nokia and Samsung.
Assessing the number of RIM products – among the company’s strategy is diversifying and prolifering its products. The company should then have increased its product line with time.
Conclusion
Concluding, it can be seen from this paper that the SWOT matrix and the Grand Strategy Matrix are very instrumental in evaluating and restructuring the competitiveness of any company. In a move to ensure that Research in Motion Company the maker of the famous Blackberry increases its competitiveness, the company should enter into joint ventures, invest in innovation, focus on developing markets and diversify its product line.
References
Anonymous, (n.d.). Ch. 8. Strategy Formulation and Implementation, Retrieved on 17th March 2013 from http://www.swlearning.com/ibc/daft6e/pdf/Daft_ch08.pdf
Mishra, A., & Akbar, M., (2007). Empirical examination of diversification strategies in business groups: Evidence from emerging markets, International Journal of Emerging Markets, Vol. 2 no, 1, pp.22 – 38
Zimerman, R., (2012). Rebound or Requiem? A SWOT Analysis of Research in Motion, Weaknesses, Retrieved on 17th March 2013 from http://beta.fool.com/dylan588/2012/12/17/rebound-or-requiem-swot-research-motion-weaknesses/18475/
